Guide To Bankruptcy

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Guide to Bankruptcy
When - Where - How - What
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Contents
Page
1 About this guide
2 What is bankruptcy?
3 How are you made bankrupt?
4 Where is the bankruptcy order made?
5 Who will deal with your case?
6 What are your duties as a bankrupt?
7 How will bankruptcy affect you?
8 What are the restrictions on a bankrupt?
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9 Becoming free from bankruptcy
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10 Bankruptcy restrictions orders and undertakings
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11 Debts incurred after you have been made bankrupt
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12 Alternatives to Bankruptcy
16
13 Insolvency Terms - what do they mean?
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14 Where to go for help and advice
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15 Data Protection Act 1998 - How we collect and use information
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16 Related Insolvency Service Publications
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1. About this guide

This guide tells you what happens if you are made bankrupt in England and Wales.
This booklet is for general guidance only. If bankruptcy proceedings are taken against you, or
you are thinking of making yourself bankrupt, you should seek your own legal or financial advice
from a Citizens Advice Bureau, a solicitor, a qualified accountant, an authorised insolvency
practitioner, a reputable financial adviser or a debt advice centre.
Other organisations also offer insolvency advice and debt counselling. Some of them are entirely
reputable and offer a professional service. However, others are controlled by individuals with no
obvious qualifications who appear to be motivated mainly by a desire to exploit an already
difficult situation. Beware, particularly of unsolicited approaches through the post or by
telephone.
a. If you are not bankrupt
Bankruptcy is a serious matter. You will have to give up any possessions of value and your
interest in your home. (Section 7 gives details of things you do not have to give up.) It will almost
certainly involve the closure of any business you run and the dismissal of your employees.
Bankruptcy will also impose certain restrictions on you.
You do not have to become bankrupt just because you are in debt. Look at the alternatives
to bankruptcy as soon as possible in case they are more suitable in your situation. A
leaflet called "Alternatives to Bankruptcy" is available from your local official receiver's
office or on-line at the Insolvency Service website at www.insolvency.gov.uk
b. If you are already bankrupt
Sections 2-12 explain the bankruptcy procedure. The official receiver will give you further
instructions. You can still propose a voluntary arrangement (details in section 13) which could
annul the bankruptcy.
A separate leaflet called Can my bankruptcy be cancelled? Information on annulment of a
bankruptcy order is available from your local official receivers office or on-line at the Insolvency
Service website at www.insolvency.gov.uk. You should consider this leaflet if you think that you
should not have been made bankrupt or if all your bankruptcy debts and the fees and expenses
of the bankruptcy proceedings can be paid or secured in full.
2. What is bankruptcy?
Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings:
free you from overwhelming debts so you can make a fresh start, subject to some
restrictions (see section 8); and
make sure your assets are shared out fairly among your creditors.
Anyone can go bankrupt, including individual members of a partnership. There are different
insolvency procedures for dealing with companies and for partnerships themselves. Separate
leaflets about these insolvency procedures are available (see section 16).
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3. How are you made bankrupt?

A court makes a bankruptcy order only after a bankruptcy petition has been presented. It is
usually presented either:
by yourself (debtors petition); or
by one or more creditors who are owed at least 750 by you and that amount is
unsecured (creditors petition).
A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or
refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings
have begun. If you dispute the creditors claim, you should try and reach a settlement before the
bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order has been made
is both difficult and expensive.
To find out more information please see the following leaflets:

How to petition for you own bankruptcy

How to make someone bankrupt
4. Where is the bankruptcy order made?

Bankruptcy petitions are usually presented at the High Court in London or at a county court near
to where you trade or live. A petition can be presented against you even if you are not present in
England or Wales at that time. This can happen when you normally live in, or within the previous
3 years have had residential or business connections with, England or Wales.
If you now normally live or work in another EU country (apart from Denmark) it is unlikely that
you can be made bankrupt in England or Wales, even if you have had residential or business
connections here within the previous 3 years. If this applies to you, you may wish to seek
separate legal advice.
Sometimes government departments start bankruptcy proceedings in the High Court in London or
in one of the District Registries. If you did not trade or do not live in the London area, your case
will usually be transferred to the appropriate local county court and, if a bankruptcy order is
made, it will be dealt with by the local official receiver.
Once the bankruptcy order has been made the official receiver will give notice of the order in the
London Gazette, which is an official publication that contains legal notices. In addition, the
official receiver has discretion to advertise the order in any other way, if he or she thinks it is
appropriate to do so.
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5. Who will deal with your case?

a. The official receiver
An official receiver is appointed by the Secretary of State and is an officer of the court. The
official receiver has responsibility for administering your bankruptcy and protecting your assets
from the date of the bankruptcy order. He or she will also act as trustee of your bankruptcy estate
unless an insolvency practitioner is appointed.
The official receiver is also responsible for looking into your financial affairs for the period before
and during your bankruptcy. He or she may report to the court and has to report to your creditors.
The official receiver must also report any matters which indicate that you may have committed
criminal offences in connection with your bankruptcy or that your behaviour has been dishonest
or you have been in some way to blame for your bankruptcy.
The official receiver will give notice of the bankruptcy order to courts, sheriffs, bailiffs, HM
Revenue and Customs, the Land Registry and any relevant professional bodies. Enquiries will
also be made of banks; building societies; mortgage, pension and insurance companies;
solicitors, landlords and any other persons or organisations who may be able to provide details of
any assets or liabilities that you have, or have had, an interest in (either on your own or jointly
with others). Third parties will also be asked about any other matters relating to your bankruptcy.
If you are unhappy with the way your case is handled by the official receiver you should follow
the procedure set out in our leaflet 'Complaints Procedure: Information on making a complaint'.
You can order copies of our publications by calling the Publications Orderline on 0845 015 0010.
Alternatively you can download the leaflet from our website, www.insolvency.gov.uk
b. An insolvency practitioner
Insolvency practitioners are individuals who specialise in insolvency work. An insolvency
practitioner, who must be authorised by either the Department for Business Innovation and Skills
(BIS) or the appropriate professional body, can be appointed trustee instead of the official
receiver. They are responsible for disposing of your assets and making payments to your
creditors.
If you wish to complain about the professional conduct of a private sector insolvency practitioner
trustee (or liquidator), you should write to their licensing body (Recognised Professional Body or
RPB). You can find more details in our leaflet 'How to make a complaint against an Insolvency
Practitioner'. The insolvency practitioner should give you details of their RPB, or call the
Insolvency Enquiry line on 0845 602 9848. Alternatively you can email the Insolvency Enquiry
Line at Insolvency.Enquiryline@insolvency.gsi.gov.uk.
To find out more information please see the following leaflets:

What happens when you are interviewed by the official receiver

Complaints procedure
How to make a complaint against an Insolvency Practitioner
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6. What are your duties as a bankrupt?

When a bankruptcy order has been made, you must:
comply with the official receivers request to provide information about your financial
affairs. The official receiver may request that you attend at his or her office for an
interview - the court will give you the address of the official receiver. (Note: usually
before the interview, you will be sent or given a questionnaire which you should fill in as
fully and accurately as possible. If the official receiver does not ask that you attend at
the office for an interview, you will be sent a letter which will set out what is required of
you. Again it is likely that you will be asked to complete a questionnaire. You should
note that in either circumstance, any questionnaire completed before the bankruptcy
order, supplied to you by an adviser or another third party, will not be acceptable;
give the official receiver a full list of your assets and details of what you owe and to
whom (your creditors);
look after and then hand over your assets to the official receiver together with all your
books, records, bank statements, insurance policies and other papers* relating to your
property and financial affairs;
tell your trustee about assets and increases in income you obtain during your
bankruptcy. (Note: by law you must inform your trustee of any property which becomes
yours during the bankruptcy. Such property includes lump sum cash payments that you
may receive, for example redundancy payments, property or money left in a will);
stop using your bank, building society, credit card and similar accounts straightaway
(see section 8);
not obtain credit of 500 or more from any person without first disclosing the fact that
you are bankrupt (see section 8);
not make payments direct to your creditors (but see section 7a).
You may also have to go to court and explain why you are in debt. If you do not co-operate, you
could be arrested.
*Your books and papers will normally be destroyed after your trustee has finished with them.
However, you can have them back, provided they have not already been destroyed, if the court
annuls your bankruptcy (see section 9).
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7. How will bankruptcy affect you?

a. In relation to your creditors
If you are made bankrupt, you must not make payments direct to creditors. Creditors to whom
you owe money when you are made bankrupt make a claim to your trustee (that is, either the
official receiver or an insolvency practitioner). They should not ask you directly for payment; if
you receive any requests, pass them immediately to your trustee to deal with and tell the creditor
that you are bankrupt. There are some very limited exceptions to this non-payment rule. The
main ones are:
secured creditors, such as creditors who have a mortgage or charge on your home;
Note: If mortgage payments are not made, the lender may sell your home.
non-provable debts, such as court fines and other obligations arising under an order
made in family proceedings or under a maintenance assessment made under the
Child Support Act 1991. Non-provable debts are not included in the bankruptcy
proceedings and you are still responsible for paying off such debts;
benefit overpayments, where the benefit provider can recover any benefit
overpayments from further benefits you receive until you are discharged, when you will
usually be released from these debts; and
student loans.
Suppliers of services to your home (gas, electricity, water and telephone) may not demand from
you payment of bills in your name which are unpaid at the date of the bankruptcy order. But they
may ask you for a deposit towards payment for further supplies or could arrange for the accounts
to be transferred into the name of your spouse or partner. You must pay continuing commitments
such as rent (if you rent your home), together with any debts you incur after the bankruptcy.
b. Payment to creditors
The official receiver will tell your creditors that you are bankrupt. They may either act as the
trustee or may arrange a meeting of creditors for them to choose an insolvency practitioner to be
the trustee. This happens if you appear to have significant assets. You may have to go to this (or
any other) meeting of your creditors.
The trustee will tell the creditors how much money (if any) will be shared out in the bankruptcy.
Creditors then have to make their formal claims. The costs of the bankruptcy proceedings are
paid first from the money that is available. The costs include fees that the official receiver or the
insolvency practitioner charge for administering your case.
At least part of the claims from your employees (if any) may be preferential and are paid next,
along with any other preferential debts. Finally, other creditors are paid, together with interest on
all debts, as far as there are funds available from the sale of your assets. If there is a surplus, it
will be returned to you. You would then be able to apply to the court to have your bankruptcy
annulled (cancelled).
If your trustee makes a payment to your creditors, they may place an advertisement about your
bankruptcy in a newspaper asking creditors to submit their claims. Depending on how long it
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takes your trustee to deal with your assets, this advertisement may appear several years after
the bankruptcy order.
c. Your assets
You must disclose the following items to the official receiver:
tools, books, vehicles and other items of equipment which you need to use personally in
your employment, business or vocation.
clothing, bedding, furniture, household equipment and other basic items you and your
family need in the home
The official receiver will let you keep these items unless they can be replaced with a suitable
cheaper alternative.
The official receiver/trustee will take control of all your other assets on the making of the
bankruptcy order. He or she, or any insolvency practitioner who is appointed as trustee, will
dispose of them and use the money to pay the fees, costs and expenses of the bankruptcy and
then your creditors. If appointed, the insolvency practitioner's fees for acting as trustee are also
paid from the money raised by selling your assets.
The trustee may apply to the court for an order restoring property to him or her if you disposed of
it in a way which was unfair to your creditors (for example, if before bankruptcy you had
transferred property to a relative for less than its worth). The trustee may claim property which
you obtain or which passes to you (for example, under a will) while you are bankrupt.
A student loan made before or after the start of a student's bankruptcy is not regarded as an
asset that the trustee may claim, if a balance of the loan remains payable.
If you have made a claim against another person through court proceedings, or you think you
may have a claim (a right of action) against another person, the claim may be an asset in the
bankruptcy.
d. What happens to your home
If you own your home, whether freehold or leasehold, solely or jointly, mortgaged or otherwise,
your interest in the home will form part of your estate which will be dealt with by your trustee. The
home may have to be sold to go towards paying your debts.
If your husband, wife or children are living with you, it may be possible for the sale of the property
to be put off until after the end of the first year of your bankruptcy. This gives time for other
housing arrangements to be made. Your husband, wife, partner, a relative or friend may be able
to buy your interest in your home from the trustee. Such a purchase would prevent a sale of the
property by the trustee at a future date. Your spouse or any other interested party should be
encouraged to take legal advice about the home as soon as possible.
If the trustee cannot, for the time being, sell your home, they may obtain a charging order on
your interest in it, but only if that interest is worth more than 1,000. If a charging order is
obtained, your interest in the property will be returned to you, but the legal charge over your
interest will remain. The amount covered by the legal charge will be the total value of your
interest in the property and this sum must be paid from your share of the proceeds when you sell
the property.
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Until your interest in the home is sold, or until the trustee obtains a charging order over it, that
interest will continue to belong to the trustee but only for a certain period, usually 3 years, and
will include any increase in its value. Therefore, the benefit of any increase in value will go to the
trustee to pay your debts, even if the home is sold some time after you have been discharged
from bankruptcy: the increase in the value will not be yours.
If, after a certain time, usually 3 years, your trustee has not sold or obtained a charge over your
interest in the property, or applied for an order of possession or obtained a charging order against
the property, or you have not come to any arrangement with your trustee about that interest, it
may be returned to you.
To find out more information please see the following leaflet:
What will happen to my home
e. Your pension
A trustee cannot usually claim a pension as an asset if your bankruptcy petition was presented
on or after 29 May 2000, as long as the pension scheme has been approved by HM Revenue
and Customs.
For petitions presented before 29 May 2000, trustees can claim some kinds of pensions. A
separate leaflet called What will happen to my pension? is available from your local official
receivers office or The Insolvency Service Publications Order Line (address on back cover).
If you are receiving a pension or become entitled to do so before you are discharged, the
pension is included as income for the purposes of an income payments order (IPO) (see section
7i).
What will happen to my pension
f. Your life assurance policy

Generally, your trustee will be able to claim any interest that you have in a life assurance policy.
The trustee may be entitled to sell or surrender the policy and collect any proceeds on behalf of
your creditors. If the life assurance policy is held in joint names, for instance with your husband
or wife, that other person is likely to have an interest in the policy and should contact the trustee
immediately to discuss how their interest in the policy should be dealt with.
You may want the policy to be kept going. Ask your trustee: it may be possible for your interest to
be transferred for an amount equivalent to the present value of that interest.
If the life assurance policy has been legally charged to any person, for instance an endowment
policy used as security for the mortgage on your home, the rights of the secured creditor will not
be affected by the making of the bankruptcy order. But any remaining value in the policy may
belong to your trustee.
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g. Work-related registrations, licences and permissions

Any registration, licence or permission you hold in connection with your work or trade might be
affected by the making of the bankruptcy order. You should inform the person who issued the
registration or authority of your bankruptcy to establish if it will remain in force or will be cancelled
or withdrawn. Any value attaching to these items may belong to the trustee. In considering this
issue you should disregard items of a personal nature such as a driving licence.
h. Your business
If you are self-employed, your business is normally closed down and any employees are
dismissed. Any business assets will be claimed by the trustee unless they are exempt (see
section 7c) and you will have to give the official receiver all your accounting records. You are still
responsible for completing all tax and VAT returns.
Your employees may be able to make a claim to the National Insurance Fund for outstanding
wages and holiday pay, payment in lieu of notice, and redundancy. Employees can claim in the
bankruptcy for any money owed that is not paid by the National Insurance Fund.
For further details, you should contact the Redundancy Payments Service on 0845 145 0004.
There is nothing to prevent a bankrupt from being self-employed. So you can start to trade again,
subject to the restrictions in section 8. You will be responsible for keeping accounting records for
this business and for dealing with the tax and VAT requirements for the new business. You will
need to register again for VAT if you meet the registration requirements. You should not continue
to use your pre-bankruptcy VAT registration number.
i. Your wages
Your trustee may apply to court for an income payments order (IPO), which requires you to make
contributions towards the bankruptcy debts from your income. The court will not make an IPO if it
would leave you without enough income to meet the reasonable domestic needs of you and your
family. If you have an increase or decrease in income, the IPO can be changed.
IPO payments continue for a maximum of 3 years from the date the order is made by the court
and may continue after you have been discharged from your bankruptcy. Or you may enter into a
written agreement with your trustee, called an income payments agreement (IPA), to pay a
certain amount of your income to the trustee for an agreed period, which cannot be longer than 3
years. There are no fixed guidelines on IPOs or IPAs - each case is assessed individually.

Income Payment Orders and Income Payment Agreements
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8. What are the restrictions on a bankrupt?

The following are criminal offences for an undischarged bankrupt:
obtaining credit of 500 or more either alone or jointly with any another person without
disclosing your bankruptcy. (Note: this is not just borrowing money - it includes your
getting credit as a result of a statement or conduct which is designed to get credit, even
though you have not made a specific agreement for it. For example, ordering goods
without asking for credit and then failing to pay for them when they are delivered);
carrying on business (directly or indirectly) in a different name from that in which you
were made bankrupt, without telling all those with whom you do business the name
in which you were made bankrupt;
being concerned (directly or indirectly) in promoting, forming or managing a limited

company, or acting as a company director, without the courts permission, whether
formally appointed as a director or not.
You may not hold certain public offices. You may not hold office as a trustee of a charity or a
pension fund.
After the bankruptcy order, you may open a new bank or building society account but you should
tell them you are bankrupt; they may impose conditions and limitations. You should ensure you
do not obtain overdraft facilities without informing the bank that you are bankrupt, or write
cheques which are likely to be dishonoured. Tell your trustee about any money that you have in
the account which is more than you need for your reasonable living expenses. Your trustee can
claim the surplus amounts to pay your creditors.
What will happen to my bank account
9. Becoming free from bankruptcy

a. How long does bankruptcy last?
You will be automatically freed from bankruptcy (known as discharged) after a maximum of 12
months. This period may be shorter if the official receiver concludes his or her enquiries into your
affairs and files a notice in court.
You will also become free from bankruptcy immediately if the court annuls (cancels) the
bankruptcy order; this would normally happen when your debts and the fees and expenses of the
bankruptcy proceedings have been paid in full or the bankruptcy order should not have been
made.
On the other hand, if you have not carried out your duties under the bankruptcy proceedings, the
official receiver or your trustee may apply to the court for your discharge to be postponed. If the
court agrees, your bankruptcy will only end when the suspension has been lifted and the time
remaining on your bankruptcy period has run. If your discharge has been suspended (stopped)
prior to 1 April 2004, you should contact the official receiver for information about how and when
you may be discharged from bankruptcy.
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b. Debts
Discharge releases you from most of the debts you owed at the date of the bankruptcy order.
Exceptions include debts arising from fraud and any claims which cannot be made in the
bankruptcy itself (non-provable debts - see section 7a). You will only be released from a liability
to pay damages for personal injuries to any person if the court thinks fit.
When you are discharged you can borrow money or carry on business without the restrictions
previously referred to. You can act as a limited company director unless you are disqualified from
doing so as a result of a separate order arising out of your involvement with a company.
c. Assets you owned or obtained before your discharge
When you are discharged there may still be assets that you owned, either when your bankruptcy
began, or which you obtained before your discharge, which the trustee has not yet dealt with.
Examples of these may be the interest in your home, an assurance policy or an inheritance.
These assets are still controlled by the trustee who can deal with them at any time in the future.
This may not be for a number of years after your discharge. Generally, these assets do not
return to you, but see section 7d above for details of what happens to your home.
With some assets - such as your home and some types of assurance policy - your spouse, a
partner, a relative or friend may want to buy your interest. He or she should get in touch with the
trustee straightaway to find out how much they would have to pay.
You must tell the official receiver about assets you obtain after the trustee has finished dealing
with your case but before you are discharged. These assets could be claimed to pay your
creditors. You have a duty to continue to assist your trustee after you have been discharged.
d. Assets you obtain after your discharge

Usually you may keep all assets you acquire after your discharge.
When will my bankruptcy end? Information on discharge from bankruptcy
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10. Bankruptcy restrictions orders and undertakings

If, during the enquiries into your affairs, the official receiver decides that you have been
dishonest either before or during the bankruptcy or that you are otherwise to blame for your
position,they may apply to the court for a bankruptcy restrictions order. The court may make an
order against you for between 2 and 15 years and this order will mean that you continue to be
subject to the restrictions of bankruptcy which are described in section 8 above. You may give a
bankruptcy restrictions undertaking which will have the same effect as an order, but will mean
that the matter does not go to court.
11. Debts incurred after you have been made bankrupt

Bankruptcy deals with your debts at the date of the bankruptcy order. After that date you should
manage your finances more carefully. If you incur new debts this could result in:
a further bankruptcy order;
prosecution if, when you incurred the debts, you did not disclose that you were
bankrupt.
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12. Alternatives to bankruptcy

It may be better for both you and your creditors to use an alternative procedure instead of
bankruptcy.
To find out more information please see the following publications:

Alternatives to bankruptcy
In Debt: Dealing with your creditors
13. Insolvency terms - what do they mean?

Annulment
Cancellation.
Assets
Anything that belongs to you that may be used to pay your debts.
Bankruptcy order
A court order making you bankrupt.
Bankruptcy restrictions order or undertaking
A procedure whereby you may have a court order made against you or give an undertaking
which will mean that bankruptcy restrictions continue to apply for a period of between 2 to 15
years.
Bankruptcy petition
A request made (by you as the debtor or by a creditor) to the court for you to be made bankrupt
and giving the reasons why.
Charging order
An order made by the court which gives the trustee a legal charge on your interest in your home.
This continues even after you are discharged from bankruptcy.
Creditor
Someone to whom you owe money.
Debts
Money you owe.
Discharge
Freed from bankruptcy
Estate
Your assets or property which your trustee can deal with to pay your creditors.
Income payments agreement
You may enter into a written agreement with your trustee to pay him or her part of your wages,
salary or other income for an agreed period.
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Income payments order

The court may order you to pay part of your wages, salary or other income to the trustee if your
income is more than you or your family need to live on.
Insolvency practitioner
An authorised person who specialises in insolvency, usually an accountant or solicitor. They are
authorised either by the Secretary of State or by one of a number of recognised
professional bodies.
Interest
A right to, or share in, a property.
Legal charge
A form of security (e.g. a mortgage) to ensure payment of a debt.
Petition
See Bankruptcy petition.
Preferential creditor
A creditor in bankruptcy proceedings who is entitled to receive certain payments in priority to
other unsecured creditors. These creditors include occupational pension schemes and
employees.
Proxy
Instead of attending a meeting, a person can appoint someone to go and vote in their place - a
proxy.
Public examination
The court may order that a bankrupt be questioned in open court about his or her affairs,
dealings and property.
Trustee
The trustee in bankruptcy is either the official receiver or an insolvency practitioner who takes
control of your assets. The trustees main duties are to sell these assets and share the money
out among the creditors.
Unsecured creditor
A creditor who does not hold security (such as a mortgage) for money owed. Some unsecured
creditors may also be preferential creditors.
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14. Where to go for help and advice

The official receiver does not send any form of notice to credit reference agencies. If you are
concerned about information held by them, a publication entitled Credit explained is produced by the
Information Commissioner's Office and is available from its website at
http://www.ico.gov.uk or by phoning 08453 091 091.
These are not the only organisations that may be able to help you. The Insolvency Service and the
Courts Service cannot accept responsibility for the information, advice, or other services provided by
these organisations.
Organisation
Who they are
Contact details
Advisory, Conciliation
and Arbitration Service
(ACAS)
The Advisory Conciliation and

Arbitration Service (ACAS) is a
public body funded by
taxpayers. It offers free help
and information on work-related
issues.
Helpline: 08457 474747

Opening hours: Monday to Friday
8am - 6pm.
Website: www.acas.org.uk.
The ACAS website contains details
of the local ACAS offices.
Business Debtline
Business Debtline is a
registered charity that provides
a free telephone debtcounselling service for the
self-employed and small
businesses facing financial
hardship. Advice is free,
independent and confidential.
Helpline: 0800 197 6026

10am - 4pm.
Website: www.bdl.org.uk
Business Link
Business Link is a free

business advice and support
service, available on and
through local advisers.
To find your nearest operator, either

search by your postcode, browse
the list below, or call 0845 600 9
006 (minicom 0845 606 2666) - you
will be connected directly to your
nearest Business Link. Website:
www.BusinessLink.gov.uk .
Citizens Advice (CAB)
Citizens Advice is a registered

charity that offers free,
independent and confidential
advice from more than 700
locations throughout the UK.
Helpline: 0207 833 2181 to find

your local Citizens Advice Bureau
(CAB).
8am - 6pm.
Website: www.citizensadvice.org.uk
which contains a directory of local
CABs. For advice, visit the CAB
Advice Guide website at
www.adviceguide.org.uk
Community Legal
Service (CLS)
The Legal Services Commission

(LSC) runs the Community
Legal Service (CLS) and
administers what was previously
Helpline: 0845 345 4345

Opening hours: Monday to Sunday
9am - 5.30pm.
Website: www.clsdirect.org.uk
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Organisation
Community Legal
Service (CLS) (Cont)
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Contact details
known as legal aid. The CLS

Directory lists solicitors and
advice agencies in your area.
You can find a CLS-approved legal

advisor using the CLS Directory
which is available at your local
library or on the website. The
website is available in English,
Welsh, Urdu, Bengali, Chinese,
Punjabi, Turkish and Gujarati.
Consumer Credit
Counselling Service
(CCCS)
The CCCS is a registered

charity dedicated to providing
free, confidential counselling
and money-management help
to families and individuals in
financial distress. They
provide counselling on
budgeting; advice on the wise
use of credit; and, where
appropriate, achievable plans
to repay debts.
Helpline: 0800 138 1111

8am - 8pm
Website: www.cccs.co.uk
Consumer Direct
Consumer Direct is the

government-funded telephone
and online service offering
information and advice on
consumer issues. Consumer
Direct is funded by the Office
of Fair Trading and delivered
in partnership with Local
Authority Trading Standards
Services.
Helpline: 0845 404 0506

8am - 6.30pm. Saturday 9am - 1pm.
Website:
www.consumerdirect.gov.uk
Lawyers For Your

Business (LFYB)
LFYB is a Law Society

initiative that represents some
1,400 firms of solicitors in
England and Wales who have
come together to ensure that
businesses, especially the
smaller owner-managed ones,
get access to sound legal
advice when they need it.
Helpline: 0207 405 9075

9am - 5.30pm. You will be sent a list
of the member solicitors in your
area (including information on
specialist areas of work and
languages spoken) and a voucher
for a free consultation.
Website:
http://www.lawsociety.org.uk/choosin
gandusing/helpyourbusiness/foryour
business.law
National Debtline
National Debtline provides

free, confidential and
independent advice over the
telephone for anyone in
financial difficulty. Callers will
receive a free self-help
information pack.
Helpline: 0808 808 4000

9am - 9pm and Saturdays
9.30am - 1pm.
Website: www.nationaldebtline.co.uk
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Page 20
15. Data Protection Act 1998 - How we collect and use information
The official receiver collects information about you to fulfil his statutory functions in relation to
your bankruptcy. The official receiver may check information provided by you, or information
about you provided by a third party, with other information held by him/her. He/she may also get
information about you from certain third parties, or give information to them, to check the
accuracy of information or to prevent or detect crime. He/she will not disclose information about
you to anyone outside The Insolvency Service unless the law permits him/her to do so. Some of
the information held by the official receiver will be passed to The Insolvency Service Corporate
and Business Services (CBS) sections in discharging his statutory functions.
The official receiver is the Data Controller for the purposes of the Data Protection Act 1998 and is
registered under the Act for the processing of your personal information. The Department of
Business, Innovation and Skills (BIS) is the Data Controller under the Act for personal information
held and processed by CBS sections.
Individuals are entitled to know what information is held about them by the official
receiver/Insolvency Service. However, we are not required to give you information which would
be likely to prejudice the proper discharge by the official receiver or The Insolvency Service of
functions designed to protect members of the public against financial loss due to the conduct of
discharged and undischarged bankrupts. Various other exemptions in the Data Protection Act
may prevent The Insolvency Service from providing you with personal information that we hold
about you. More information about your rights and the exemptions may be found on the
Information Commissioners website at www.ico.gov.uk
Most of the information about you is held by the official receiver and will have come from you in
the questionnaire you completed and your statements made to the official receiver. You will, of
course, know this information already but you can check its accuracy if you wish to do so.
Please note that computerised information held about you on the Individual Insolvency Register
can be viewed by members of the public on our website and may be accessed by search
engines on the internet. Our leaflet entitled "Individual Insolvency Register" gives details of the
type of information held on the register and is available from our website, www.insolvency.gov.uk,
or your local official receiver's office.
If you want to know more about what information is held about you, the purposes for which it is
held, and to whom it may be disclosed you should contact the official receiver who was appointed
to deal with your bankruptcy.
He/she will give you a standard data request form (subject access request) to complete and
return with appropriate forms of identification and provide full details of the type of information
that you can be given. On receiving the completed request form, the official receiver has 40
working days under the Act to deal with your request.
When you get the information, if you discover that it is inaccurate and/or incorrect you should, in
the first instance, write to the official receiver with full details. If information relating to your
request is likely to be held by The Insolvency Services CBS sections, the official receiver will
inform you of that when he/she is responding to your request. To obtain the information from a
CBS section you will need to make a separate request (using a standard data request form and
two forms of identification) to the appropriate Section Head responsible for holding the
information about you. If you do not have an address for the CBS section, or your request may
involve several sections you should write to the Data Protection Liaison Officer for The
Insolvency Service at Technical Section, PO Box 15394, Birmingham B16 6HT
You can get further information about the Data Protection Act 1998 from the Information
Commissioner's Office at Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF (Tel: 08456
306060) or from their website: www.ico.gov.uk.
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Page 21
16. Related Insolvency Service Publications

Information about The Service
A Guide to The Insolvency Service
Complaints Procedure: Information on making a complaint
The Insolvency Service Charter *
The Insolvency Service Publications Scheme
Information about insolvency procedures
A Guide for Creditors *
A Guide for Directors *
Alternatives to Bankruptcy
Bankruptcy Restrictions Orders
Can my bankruptcy be cancelled? - Information on annulment of a bankruptcy order
Fast-track Voluntary Arrangements
Guide to Debt Relief Orders
Individual Insolvency Register
Information and Guidance for members of the Creditors Committee
Statutory demands
When will my bankruptcy end?
What happens when you are interviewed by the official receiver *
What will happen to my bank account?
What will happen to my home? *
What will happen to my pension?
Insolvency practitioners
Trustees & liquidators in bankruptcies and compulsory liquidations - Information on the
appointment, functions, powers and payment of trustees and liquidators, and their complaints
procedure
How to make a complaint against an insolvency practitioner
Dealing with debt
How to make someone bankrupt
How to petition for your own bankruptcy
How to wind up a company that owes you money
How to wind up a partnership
How to wind up your own company
In Debt - Dealing with your creditors
All of these publications are available from our website www.insolvency.gov.uk
*These leflets are also available in Urdu, Traditional Chinese, Welsh and Sylheti. Additionally they
are available on audiotape, on request, from official receiver offices.
21
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Page 22
This booklet provides general information only. Every effort has been made to ensure that the
information is accurate, but it is not a full and authoritative statement of the law and you should
not rely on it as such. The Insolvency Service cannot accept any responsibility for any errors or
omissions as a result of negligence or otherwise.
Crown copyright 2010.

The information in this booklet is subject to Crown copyright protection. The Crown copyright
material may be reproduced free of charge in any format or media without requiring specific
permission. This is subject to the material being reproduced accurately and not being used in a
derogatory manner or in a misleading context. Where the material is being published or issued to
others, the sources and copyright status should be acknowledged. If there were a restriction on
reproduction, any other proposed use of the material would be subject to the approval of Her
Majesty's Stationery Office . Applications should be made to the HMSO's Licensing and
Information Policy Team , The Office of Public Sector Information, St Clements House, 2-16
Colegate, Norwich NR3 1BQ.
The permission to reproduce Crown copyright material does not extend to any material in this
booklet which is identified as being the copyright of a third party. Authorisation to reproduce such
material would need to be obtained from the copyright holders concerned. For further details on
the licensing of Crown copyright, see current guidance at
http://www.opsi.gov.uk/advice/crown-copyright/copyright-guidance/index.htm issued by The Office
of Public Sector Information for HMSO
22
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Page 23
12/10/2010
12:08
Page 24
You can get more copies of this booklet from the following website:
www.bis.gov.uk/publications.
You can also order copies of our publications by calling the
Publications Orderline on
0845 015 0010.
You can also fax orders to the Orderline on
0845 015 0020. Minicom users should telephone 0845 015 0030.
Publications are also available on our website
www.insolvency.gov.uk
October 2010
URN10/1144

Guide To Bankruptcy

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guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

3 How are you made bankrupt?

4 Where is the bankruptcy order made?

5 Who will deal with your case?

6 What are your duties as a bankrupt?

7 How will bankruptcy affect you?

8 What are the restrictions on a bankrupt?

9 Becoming free from bankruptcy

10 Bankruptcy restrictions orders and undertakings

11 Debts incurred after you have been made bankrupt

13 Insolvency Terms - what do they mean?

14 Where to go for help and advice

15 Data Protection Act 1998 - How we collect and use information

16 Related Insolvency Service Publications

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

1. About this guide

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

3. How are you made bankrupt?

by yourself (debtors petition); or

How to petition for you own bankruptcy

4. Where is the bankruptcy order made?

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

5. Who will deal with your case?

To find out more information please see the following leaflets:

What happens when you are interviewed by the official receiver

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

6. What are your duties as a bankrupt?

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

7. How will bankruptcy affect you?

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

What will happen to my home

What will happen to my pension

f. Your life assurance policy

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

g. Work-related registrations, licences and permissions

To find out more information please see the following leaflet:

Income Payment Orders and Income Payment Agreements

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

8. What are the restrictions on a bankrupt?

being concerned (directly or indirectly) in promoting, forming or managing a limited

What will happen to my bank account

9. Becoming free from bankruptcy

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

d. Assets you obtain after your discharge

When will my bankruptcy end? Information on discharge from bankruptcy

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

10. Bankruptcy restrictions orders and undertakings

11. Debts incurred after you have been made bankrupt

a further bankruptcy order;

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

12. Alternatives to bankruptcy

13. Insolvency terms - what do they mean?

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

Income payments order

guide to bankruptcy Oct 10:guide to bankruptcy Feb08 v1.qxd

14. Where to go for help and advice

Who they are

The Advisory Conciliation and

Helpline: 08457 474747